Get ready for the cliff dive
E. Thomas McClanahanIt seemed to begin well. Republicans, led by House Speaker John Boehner, came out a few days after the election in a conciliatory mood. They acknowledged that any “fiscal cliff” deal would have to include more revenue.
But President Obama came back with his usual “my way or the highway” approach, which has succeeded only in infuriating Republicans. Today, Boehner said the two sides were deadlocked.
Indeed, Obama’s latest offer was a joke. Published reports say he demanded close to $1 trillion in new revenue from higher tax rates now and another $600 billion a few months hence, squeezed out of any agreement on tax reform.
And Obama being Obama, he sought another $150 billion in “stimulus” spending. Apparently, spending money is the only tool in his economic-growth toolkit.
What did he offer in return? A vague promise of $400 billion in entitlement savings next year, but no particulars on where it would come from. Treasury Secretary Tim Geithner also reportedly sought an end to the debt limit, permanently. Meanwhile, we’re hearing next to nothing about spending cuts.
It’s hard to see how this works to Obama’s long-term advantage. If we go over the cliff, we’ll probably get a recession. Some economists believe we’re already in one.
An economic downturn, on top of the last five years of misery, would blight this president’s second term like nothing else. And his feckless behavior is further poisoning his relationships with Capitol Hill Republicans, as if they weren’t bad enough already. That will make it even harder to get anything done in Washington.
The latest Bob Woodward book, “The Price of Politics,” pounded Obama for his incompetent handling of the debt ceiling talks last year. It doesn’t look as if he’s learned a thing from the experience.
Right now, I’d say we’re headed over the cliff.
George Hunsucker
Northland
5 months, 3 weeks agoR’s should just walk away from this community organizer who obviously has zero economic sense, or for that matter common sense….
Trillions in debt and this bozo just wants more spending… what a “leader”
Phil Cardarella
5 months, 3 weeks agoHere is what the Prez understands — and the Boehner knows but cannot admit because of his nutty caucus and its state of denial:
We had an election. Obama won, Romney lost. Paractically the only major issue was taxation on the wealthy. The Bush rates for the upper 2% are DEAD MEAT.
Jan 1, all of the Bush “tax cuts” and lots of others end. And, if the voting public sees the GOP fail to re-up them for the 98% because the want to keep them for the 2%, the GOP will be blamed, not Obama. This is NOT an issue on which Obama will or should compromise. The people have spoken, loud and clear.
There is no “fiscal cliff”. Barely a bump. Any cuts in spending and any hikes in taxes can be cured on Jan, 3. Anyone who does not understand that is too dumb to buy stocks anyway. Keep yur money under your mattress.
The reason for the panic is that on Jan. 3, NO ONE will be able to hold the 98% hostage for the 2%. Who is then going to vote against lower taxes for the 98%? Even that ol’ debbel Grover can’t bite you.
But, horrors! The insanely rich will still be insanely rich but must pay a slightly higher — but, frankly, not nearly high enough — rate on income over $250K. Somehow, they will bear up. We are not so lucky that all the nutty billionaires will go hide in a Colorado valley and pout, depriving us peasants of their great wisdom.